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If you are the customers of this bank then there is a bad news, you cannot withdraw more than 35 thousand money; RBI ban

If you are the customers of this bank then there is a bad news, you cannot withdraw more than 35 thousand money; RBI ban

After PMC Bank, now the customers of Shri Gururagavendra Sahakar Bank Niyamitha (SGRSBN) Bank have suffered a major setback.

RBI Directions to SGRSBN For Close Business

After PMC Bank, now the customers of Shri Gururaghavendra Sahakar Bank Niyamitha (SGRSBN) Bank have suffered a major setback. The Reserve Bank of India (RBI) has banned the business of Shri Gururaghavendra Sahakar Bank Niyamitra in Bengaluru, Karnataka with immediate effect. Since the move of RBI, all the business of the bank has been closed from 10 January 2020. The RBI has also issued guidelines to withdraw cash limit by customers of the bank, according to which now customers can not withdraw more than 35 thousand rupees of the total balance from any savings or current account.

The bank will not be able to do any transaction

After the RBI order, the bank can no longer approve any grant or any renewal. Apart from this, neither the bank can offer any new loan nor can take any cash deposit. The bank cannot make any new investment till the next RBI order. According to the RBI, the bank cannot do any transaction or cash transaction of any kind. Whether it is to pay someone’s money or sell the property.

Bank’s license will not be canceled

RBI has said in its guidelines that some restrictions are being imposed on the bank, but this does not mean that the license of the bank has been canceled. These restrictions on the bank will continue for 6 months. However, the RBI has said in its guidelines that these restrictions will be reviewed. The RBI had earlier issued written instructions to the bank on 2 January.

Also Read : Michael Debabrata Patra Appointed As RBI Deputy Governor, Replacing Viral Acharya

Restriction under which act

Sri Gururagavendra Sahakar Bank Niyamitha is an urban co-operative bank. RBI has issued guidelines related to restrictions on the bank under sub-section (1) of section 35A of the Banking Regulation Act 1949 and section 56 of the Banking Regulation Act 1949. According to the bank’s website, the bank is paying 8 percent interest on deposits ranging from 1 year to less than 2 years and 8.5 percent annually on deposits ranging from 2 to 5 years. Explain that earlier, the RBI had banned Punjab and Maharashtra Cooperative (PMC) Bank Limited. However, the cash withdrawal was approved later.

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